Ripe Investment Opportunities for Student Accommodation Sector
Posted by Colliers on 16th December 2022 -
Russell Group universities expansion plans are good news for the Purpose Built Student Accommodation sector
Demand from global capital for UK Purpose Built Student Accommodation (PBSA) shows no sign of dimming.
We have witnessed an exceptionally strong few years where annual investment volumes have averaged c.£5billion. Underpinning this is a growing appetite from students for UK higher education, with overseas students making up a significant proportion of this. Demand from China alone is set to explode from the already high level of c100,000 first year students arriving in the UK each year. The latest forecasts from Oxford Economics predicts the number of Chinese households with an income over $200,000 per annum (constant prices) is set to grow by a staggering 2.9 million by 2040. The young students within these families will have heightened expectations of student housing, having spent much of their lives in relative luxury, and will be drawn to the high quality and safety offered by most modern UK PBSA schemes.
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